Askume, Sept 20 – Indonesia’s Barito Renewable Energy Corp (BREN.JK) tumbled 20% on Friday after global index provider FTSE Russell said it would remove the geothermal energy giant from its index due to “high shareholder concentration” .
Barito Renewables, Indonesia’s largest company by market capitalization, will be included in the FTSE Global All Cap Index Series and related indicators as planned on September 23, but will be removed early the next trading day.
FTSE Russell said four shareholders control 97% of the total share capital of Barito Renewables.
The company is majority owned by Barito Pacific (BRPT.JK) , from which it was spun off late last year. Billionaire Prajogo Pangestu owns about 71% of Barito Pacific.
Singapore-based Green Era Energy, the renewable energy investment arm of the Pangestu family, owns 23.6% of Barito Renewables. Jupiter Tiger Holdings and Prime Hill Fund each hold about 4.4%.
Christine Natasya, equity research analyst at Bahana Sekuritas, said: “The FTSE’s decision triggered panic selling by investors, particularly in companies owned by Prajogo Pangestu, which caused the Indonesia Stock Exchange composite index to fall.”
Shares of Barito Renewables fell 20% on Friday to their lowest since mid-August, marking their worst day since early January.
Thermal coal miner Petrindo Jaya Kreasi (CUAN.JK), in which Pangestu holds 85% of shares, fell nearly 20% before recovering some losses.
Chandra Asri Pacific (TPIA.JK) , another company owned by Pangestu, fell nearly 9%.
That weighed on Indonesia’s benchmark index (.JKSE) , which fell 2% during the session, its worst day since early August. It was last trading 1.4% down, a one-week low.
Barito Renewables’ share price has been volatile since it went public last October. The stock has risen more than 1,100% in the nine months since listing, including two periods when it fell more than 50%.
